Apr 14, 2022
Chainlink (LINK) Explained in 60 Seconds
Chainlink is a blockchain translation layer that connects smart contracts to external data sources. It was developed by Sergey Nazarov and his team at SmartContract.com in order to solve the oracle problem.
The oracle problem is a common challenge in blockchain development. The main idea of the oracle problem is that there are certain aspects of our physical world which cannot be easily translated into digital information, for example, the weather, air quality, and other environmental factors.
In order to provide this data to smart contracts, we need an intermediary called an “oracle,” which will take care of getting this data from the physical world and translating it into digital information that can be read by a smart contract.
The Chainlink Network consists of nodes called “oracles” that work as intermediaries between the physical world and smart contracts. Chainlink enables smart contracts to securely access real-world information that resides outside of the blockchain.
In layman’s terms, this allows a blockchain (or smart contract) to communicate with real-world events.
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